Amazon Q3 2026 Results: AWS Growth Hits Five-Year High
Amazon Q3 2026 results show AWS surging while GAAP EPS and revenue softened and the release lacked Q4 guidance, prompting trader focus on holiday demand.
KEY TAKEAWAYS
- AWS net sales rose 39.3% to $46.0 billion, its fastest growth in nearly five years.
- Company net sales were $201.9 billion, up 12% year over year.
- Diluted GAAP EPS fell to $1.89 and the primary release omitted fourth-quarter sales guidance.
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Amazon’s Q3 2026 results, released Oct. 29, showed strong momentum in its cloud unit AWS even as GAAP profit measures softened. The primary release omitted fourth-quarter sales guidance, focusing attention on how the company will manage holiday retail demand.
Quarter Results and Profitability
Amazon.com Inc. reported net sales of $201.9 billion for the quarter ended Sept. 30, 2026, a 12% increase from $180.2 billion a year earlier, or 13% excluding a $0.9 billion unfavorable foreign-exchange impact. Operating income rose to $28.1 billion, with an operating margin of 13.9%, the highest the company has recorded.
Net income declined to $20.7 billion, and diluted GAAP earnings per share fell to $1.89 from $1.95. Amazon attributed the year-over-year decline mainly to $9.5 billion of pre-tax gains on Anthropic-related investments recorded in the prior-year quarter that did not recur.
AWS Growth and Outlook
AWS net sales surged 39.3% to $46.0 billion, marking its fastest growth in nearly five years and generating an annualized revenue run rate of about $184 billion.
The primary release did not include fourth-quarter net-sales or operating-income guidance. Secondary reports cited a fourth-quarter sales range of $225 billion to $235 billion, described as below Wall Street expectations, with consensus estimates near $202.2 billion in revenue and adjusted EPS around $1.96. Concerns over the outlook centered on potentially slower holiday retail demand.
The contrast between AWS’s rapid expansion and softer GAAP profit metrics will shape scrutiny of Amazon’s ability to convert cloud scale into broader company growth as the year closes.
